Convex Finance is a decentralized finance (DeFi) protocol designed to amplify rewards for Curve Finance (CRV) liquidity providers and stakers. Launched by an anonymous team, it operates as a yield-boosting layer atop Curve—one of DeFi's most stablecoin-focused decentralized exchanges.
How Convex Finance Works: Core Features Explained
Built as a complementary protocol to Curve Finance, Convex optimizes CRV staking rewards through innovative tokenomics:
veCRV and Reward Boosting Mechanism
- Curve Finance rewards liquidity providers with CRV tokens, which can be locked for veCRV (vote-escrowed CRV).
- Longer lock periods (up to 4 years) yield higher veCRV allocations.
- Convex aggregates these locked positions to provide "boosted" rewards for all users.
Key Tokens in the Ecosystem
CVX (Convex Token)
- Native governance token used for platform voting (e.g., gauge weight allocations).
- Minted proportionally to CRV claims by Curve LPs on Convex.
- Stakers earn platform fees as cvxCRV.
cvxCRV (Tokenized veCRV)
- Represents 1:1 CRV deposits locked in Convex.
- Stakable for rewards in CRV, CVX, and veCRV.
- Can be paired with CRV in SushiSwap's liquidity pool for additional CVX incentives.
👉 Discover how CVX staking works
Benefits for Different User Groups
For CRV Stakers:
- Higher yields from boosted CRV rewards
- Platform fees paid in CRV + Curve trading fees (3CRV)
- Liquid cvxCRV tokens (no lock-up)
- Additional rewards: CVX, veCRV airdrops (e.g., EPS)
For Curve Liquidity Providers:
- Claim CRV with maximum boosts without self-locking
- Zero deposit/withdrawal fees
- Multi-token incentives (e.g., SNX)
CVX Market Data Summary
| Metric | Value |
|---|---|
| Current Price | $2.25 (-1.04% 24h) |
| All-Time High (ATH) | $60.33 (Jan 2022) |
| Market Cap | $184.49M |
| Circulating Supply | 81.99M CVX |
| 24H Trading Volume | $6.61M |
| Crypto Market Share | 0.01% |
Where to Buy CVX Tokens
CVX trades on major centralized and decentralized exchanges:
- CEXs: Binance, ZB.com
- DEXs: SushiSwap
FAQs About Convex Finance
Q: What makes Convex Finance different from Curve?
A: Convex doesn’t replace Curve—it optimizes CRV rewards by pooling veCRV stakes to boost yields for all users.
Q: Can I withdraw my locked CRV from Convex?
A: No, but you receive liquid cvxCRV tokens representing your position, which can be traded or staked.
Q: How are CVX tokens distributed?
A: They’re minted based on CRV claims; the minting ratio decreases every 100,000 CVX.
Q: Is Convex Finance audited?
A: While the team is anonymous, the protocol has undergone multiple smart contract audits.
Q: What’s the maximum CVX supply?
A: Capped at 100 million tokens (currently ~82% circulating).